Question

John's bank statement shows a closing balance for a given month as $2,200, and his personal account register shows a closing balance for the same month as $2,050. John investigated his accounts to identify the following discrepancies: the bank charged $200 in bank charges. Checks for $200 were not yet paid. Deposits not yet credited were $300. The bank credited $450 to John's account. What will be the reconciled amount of John's bank account? John's bank balance will be reconciled at $.

Answer 1

To reconcile John's bank account, subtract the bank charges and add the checks and deposits. Finally, subtract the bank credit to get the reconciled amount.

Step-by-step explanation:

To reconcile John's bank account, we need to calculate the adjusted ending balance by accounting for the discrepancies between John's bank statement and personal account register.

Starting with the closing balance from the bank statement ($2,200), we subtract the bank charges ($200) and add the checks not yet paid ($200) and the deposits not yet credited ($300). Finally, we subtract the bank credit ($450) to get the reconciled amount.

Reconciled balance = $2,200 - $200 + $200 + $300 - $450 = $2,050.